Correlation Between Oppenheimer International and Hartford Schroders
Can any of the company-specific risk be diversified away by investing in both Oppenheimer International and Hartford Schroders at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oppenheimer International and Hartford Schroders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer International Growth and Hartford Schroders Emerging, you can compare the effects of market volatilities on Oppenheimer International and Hartford Schroders and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Oppenheimer International with a short position of Hartford Schroders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer International and Hartford Schroders.
Diversification Opportunities for Oppenheimer International and Hartford Schroders
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oppenheimer and Hartford is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer International Grow and Hartford Schroders Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Schroders and Oppenheimer International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Oppenheimer International Growth are associated (or correlated) with Hartford Schroders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Schroders has no effect on the direction of Oppenheimer International i.e., Oppenheimer International and Hartford Schroders go up and down completely randomly.
Pair Corralation between Oppenheimer International and Hartford Schroders
Assuming the 90 days horizon Oppenheimer International Growth is expected to under-perform the Hartford Schroders. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oppenheimer International Growth is 1.08 times less risky than Hartford Schroders. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Hartford Schroders Emerging is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,689 in Hartford Schroders Emerging on September 12, 2024 and sell it today you would earn a total of 41.00 from holding Hartford Schroders Emerging or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer International Grow vs. Hartford Schroders Emerging
Performance |
| Timeline |
| Oppenheimer International |
| Hartford Schroders |
Oppenheimer International and Hartford Schroders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer International and Hartford Schroders
The main advantage of trading using opposite Oppenheimer International and Hartford Schroders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer International position performs unexpectedly, Hartford Schroders can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hartford Schroders will offset losses from the drop in Hartford Schroders' long position.The idea behind Oppenheimer International Growth and Hartford Schroders Emerging pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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